The main reason for inflation is obvious.

[alpacinou]

Is this correct?

The main reason for inflation is obvious. The government continues to act irresponsibly, printing money hand over fist which is not backed by commodity. This fiat money artificially increase demand and leads to hyper inflation.

 

[Tarheel]

If you say the government 'continues to act irresponsibly" that assumes it already was acting irresponsibly. (That may very well be true.)

Fiat money isn't backed by anything in the first place.

Try:

Increasing the money artificially increases demand, which drives up prices.

Governments all over the world have done the same thing, with predictable results.

 

[jutfrank]

You've missed a third person verb conjugation in the final sentence.

Write hyperinflation as a single word.

 

[alpacinou]

You've missed a third person verb conjugation in the final sentence.

Write hyperinflation as a single word.

Is this okay now?

The main reason for inflation is obvious. The government continues to act irresponsibly, printing money hand over fist which is not backed by commodity. This fiat money artificially increases demand and leads to hyperinflation.

 

[jutfrank]

It looks okay to me.

 

[Tarheel]

I believe hyperinflation has a more or less specific meaning. For example, inflation of 100% would definitely be hyperinflation. However, inflation of 10%, as bad as it is, would not be considered hyperinflation

 

[Tdol]

Does it always lead to hyperinflation? Hyperinflation doesn't strike me as common enough for the link you are making.